Shanghai aluminum futures rise to near 2-month high

Source:Reuters-Global Times Published: 2018/8/9 17:28:40

Shanghai aluminum rose as much 2.8 percent to a near two-month high on Thursday, tracking a jump in London in the previous session, as a strike affecting Alcoa's alumina refineries in Australia and warnings of shutdowns by Rusal supported prices.

The Alcoa plants account for around 9.3 million tons of capacity or some 8 percent of the world's supply of alumina.

Alcoa said on Thursday it did not expect any impact on its production from the industrial action running until August 17.  

Russian aluminum giant Rusal is concerned about an impending catastrophe if US sanctions are not lifted, with some of its production halted for as early as September, two sources close to the company said.

The most-traded October aluminum contract on the Shanghai Futures Exchange touched 14,885 yuan a ton during the earlier trading session, its highest since June 13.           

"This afternoon sees US employment and [producer price index] data releases, which if in line as with this morning's Chinese data could also translate itself into further buying of metals," Malcolm Freeman, director of Kingdom Futures, wrote in a note on Thursday.

All other Shanghai metals gained at least half a percent with the exception of tin, which edged down 0.1 percent.

China's factory price inflation cooled in July, amid a slowdown in economic growth, according to official data released on Thursday.

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